Anand Rathi - Daily Strategist

The NIFTY futures saw a rise of 3.20 % in OI with prices moving up indicating fresh long positions built up in the market thus forcing bears to cover their positions thus indicating further strength in the market .The nifty June series futures discount came up from 6 to 14 points indicating short positions built up at higher levels Market if it sustains above 4210 levels then we may see further short covering their positions and fresh built up of long positions. The FII were sellers in index futures marginally to the tune of 31 crs and buyers in index options to the tune of 156 crs. The PCR has changed from 1.37 to 1.42 levels indicates some buying support may be seen in the market. IV in the market was 25.35 and HV was 22.37.

Among the Big guns, ONGC saw rise in OI with prices coming down indicating shorts positions built up in the counter suggesting some weakness may be seen in the counter. Whereas RELIANCE saw rise in OI with prices flat indicating some profit booking seen in the counter suggesting one may take long positions in he counter on any dip.

In the TECH counters INFOSYSTCH & WIPRO saw gain in OI with prices remaining flat indicating that both bulls and bears were aggressive in the counter suggesting some buying may be expected in the counter at lower levels .SATYAMCOMP & TCS saw rise in OI with prices facing resistance indicating short positions built up in the counter suggesting further weakness may be seen in the counter.

In the BANKING counters, SBIN saw rise in OI with prices moving up indicating fresh long positions built up in these counters and shorts covered their positions indicating further strength may be seen in this counters in coming days. ICICIBANK & HDFCBANK saw gain in OI with prices in a range suggesting that both bulls and bears made aggressive position in the counter indicating uncertainty may prevail in these counters.

In the Metal pack, TATASTEEL saw rise in OI with prices almost flat indicating that both bulls and bears were aggressive in the counter indicating counter is seeing buying support at current levels suggesting further strength may be seen in the counter. SAIL saw rise in OI with prices facing resistance at current levels suggesting some uncertainty may prevail I the counter. HINDALCO saw rise in OI with prices crossing the resistance suggesting further strength may be seen in the counter. NALCO saw marginal rise in OI with prices coming up indicating buying emerging at lower levels. STER saw rise in OI with price facing resistance at current levels suggesting some weakness may be seen in this counter.

We feel that the volume and built up in OI suggests that market may show strength if it sustains above 4210 levels where we may see fresh long positions built up in the market thus one should not take aggressive short positions in the market . One should trade with strict stop losses to be adhered too.

STOCKS TO WATCH:

HINDALCO, KOTAKBANK, CUMMINSIND, CENTURYTEX, REL.